Gold Continues to Rise Supported by Weak Dollar and Expectations of US Rate Cuts
Gold continued its rise for the third consecutive session on Thursday, August 14, supported by the decline of the US dollar and falling Treasury yields, amid strong expectations that the Federal Reserve will cut interest rates in September.
Spot gold recorded a rise of 0.4% to reach $1,368.99 per ounce by 01:21 GMT, while December gold futures rose 0.3% to $1,417.80.
The weakness of the dollar, which approached its lowest levels in weeks against a basket of major currencies, contributed to the demand for gold from holders of other currencies. Additionally, the decline in US Treasury yields for ten years enhanced the appeal of the yellow metal as an alternative investment.
Expectations for rate cuts were bolstered after US inflation data showed a slight increase in consumer prices in July, prompting traders to consider a rate cut on September 17 almost certain, according to data from the London Stock Exchange Group.
In a related context, silver rose by 0.2% to $38.56 per ounce, while platinum fell by 0.1% to $1,338.33. Palladium performed strongly with an increase of 1.3% to reach $1,136.70.
